Essays on Microeconomics

The key to success of any project or rather business venture is efficient resource management. Efficient resource management involves many aspects but the major one is resource allocation. It is important to note that economic resources are always limited and for this reason, it is very crucial to design mechanisms on how best to use of these limited resources. Resource allocation refers to the way resources are to be utilized in any given organization to obtain maximum or rather optimum output. Baumol & Blinder, (2008) asserts that, according to the classical economists, scarce resources can be efficiently allocated to alternative users through a competitive mechanism.